A contract with quality and effective terms is very important for those who participate in business-to-business, business-to-consumer, and consumer-to-consumer financial transactions. As such, organizations often seek ways to improve their contracting procedures to ensure that the organization will benefit from the terms of any contract. However, without developing and adhering to sound and repeatable steps, the contracting procedures of an organization are difficult to measure in terms of efficiency, risk, price compliance, and the like.
Furthermore, ensuring that contract terms are developed and negotiated in light of ever-changing business conditions is difficult when companies do not establish, and comply with, consistent and repeatable procedures. Many organizations may employ contracting procedures, yet not establish methodologies that consider variances in economic conditions and business needs, so the organizations will most likely experience lost opportunities and reduced profits. As such, there is a need for a contract audit, resolution and recovery business practice that enables an organization to evaluate supplier performance, ascertain the existing health of contracts and identify opportunities to improve and re-engineer contracting procedures.